1. Key Challenges facing the realisation of the Twinning Project in Ukraine – a Resident Twinning Advisor’s Experience‘Strengthening NBU potential through the approximation to EU standards of central banking’ ARTUR RADOMSKI (NATIONAL BANK OF POLAND) ‘Promoting Twinning Cooperation Conference’ 30 September - 1 October 2010, Warsaw

2. Resident Twinning Adviser Artur Radomski • Adviser at the Office of the President of the National Bank of Poland • Over 15 years of cooperation with the Central Banks and Supervisors from the CIS-27-countries • Experienced in the position as project manager, supervisor and coordinator • Participation in program schemes like Phare, TAIEX, Twinning, PFS and PAUCI USAID

3. Ukraine Basic Data • Population: • (ca) 45.000.000 Ethnic groups • 77.8 % Ukrainian • 17.3 % Russian • 4.9 % others 2010 estimation • GDP (Purchasing Power Parity) • Total $302.454 billion[1] • Per capita $6,650[1 ] • GDP (nominal) • Total $127.133 billion[1] • Per capita $2,795[1] [1]Source IMF ‘Ukraine” 2010-04-21.

4. On September, 2010, there are 38 projects in the Twinning Work Plan: 10 Twinning projects (accreditation, sanitary and phitosanitary, gas regulation, justice, civil service, transport, investments, statistics, monetary policy, financial control ) are in implementation phase 2 Twinning projects (environmental protection and housing infrastructure) are in contract drafting phase 7 Twinning projects (judicial reform, civil service, accreditation, communications, statistics and internal  affairs, social policy)  are in Twinning Fiche preparation phase 6 Twinning projects (social and labor policy, education, telecommunications, civil aviation,  phitosanitary and external audit) are in TOR preparation phase 5 Twinning projects are in identification stage 8 Twinning projects (internal financial control, competition, energy regulation, civil aviation, standards and norms, space technologies, transport, internal affairs) have been finalized. Twinning in Ukraine: EUROPEAN UNION IS THE MAIN DONOR TO UKRAINE

5. The institutional framework of the German-Polish Consortium of Introduction of the MS consortium:(Institutional Framework) Beneficiary Member states

6. Project title: Strengthening NBU potential through the approximation to EU standards of central banking Duration: 18 months Budget: 1.100.000 EUR Number of the STE: 24 Project Basic Facts:

7. Project Basic Facts • Matrix of the activities under the project components

8. In Poland there is no specialised institution that support the public institutions with project preparation and financial management. As a result, each public institution in Poland that would like to realise EU projects needs to allocate additional resources for it (HR, Finance etc). In order to be more efficient in the winning and realisation of the EU funded project the establishing of such a ‘support institution’ is needed Preparation

9. Misunderstanding of the Twinning Project in BC • ‘Another technical assistance program’ • ‘Advisors are coming to work in Ukraine because there • is no jobs in their countries’ • ‘Let them do their work, they are paid for this (aboutMS Experts)’ • Twinining is an effort for the BC institution but it is worth • to take it. • Twinining guaranty sustainable results. • Twinning is Joint exercise!! Key role - partners • organizations negotiate and jointly prepare the work plan. • Both sides need to be involved in the realisation of the • project.

10. Coordination

11. Coordination

12. Political and Economical ‘Climate’ in Ukraine • Overcoming of the ‘political clinch’ • ‘Towards the stability’ • ‘Ukraine is ready/forced to do reforms’ • ‘Unblocking a decision making process’ • There is still ‘room to improvement’ • Downsizing of the bureaucracy • More openness and trust • Improving of the English skills of the BC institutions

13. Political and Economical ‘Climate’ in Ukraine • Overcoming of the ‘political clinch’ • ‘Towards the stability’ • ‘Ukraine is ready/forced to do reforms’ • ‘Unblocking a decision making process’ • There is still ‘room to improvement’ • Downsizing of the bureaucracy • More openness and trust • Improving of the English skills of the BC institutions

14. ‘Best practices’ vs. reality • EU projects should be based on the credibility • Consortia rules! • (If there is only one offer - the consortiumshould be required)

15. Mutual benefits of Twinning for counterparts Exchange of experiences and knowledge based on equal-level communication between twinning partners (civil servant to civil servant) Experience in the management of twinning projects Complementarity in the case of a consortium Alignment with current European legislation Knowledge of political administrative systems Long-term and structural working-relationships, professional networking, and, therefore, influencing attitude towards a beneficiary country in the EU Training and improving professional capacity Development and implementation of adapted legislation which is necessary for fulfillment of the obligations on joint Agreements and Action Plans, and for integrating into the European  markets Changes in organisational practices and culture, improvements in managerial styles, better communication and co-ordination between and within Beneficiary Administrations are valuable bi-products of the process of MS civil servants working closely alongside BA counterparts. Twinning Benefits

16. Question and Answers Thank you for the attention Any questions and comments are welcome! E-mail: artur.radomski@bank.gov.ua